Trump reveals $2B investment plan to boost US domestic critical mineral supply chain

The White House has announced more than $2 billion in investments and deals aimed at expanding US production of critical minerals, battery materials, magnets and other components used in advanced technologies, including satellites, drones, fighter jets and spacecraft. The largest investment is $1.4 billion for Sila Nanotechnologies, a California-based company developing silicon-carbon battery anodes. The funding will support expanded production of the anodes and the buildout of a lithium-ion battery cell manufacturing facility. The White House said the resulting supply will support satellite operations, unmanned aerial systems and munitions. The announcement also includes $400 million for Sunrise Energy Metals to develop a full scandium supply chain, including a primary scandium mine. Scandium can be added to aluminum to produce lightweight alloys with higher strength and heat resistance, making the material useful in aerospace applications. Niron Magnetics, a Minnesota company developing permanent magnets without rare earth elements, will receive $150 million. Its technology is aimed at reducing reliance on foreign rare-earth supplies while supporting domestic production of magnets used across modern electronics and defense systems. Critical materials meet advanced hardware Another $85 million-plus will go to Standard Bauxite to secure supplies of refractory-grade bauxite. The material is used to make high-temperature-resistant products needed for industrial manufacturing and defense applications. The Export-Import Bank is also investing $8 million in 5E Advanced Materials to develop a boron deposit in California. Boron is used in permanent magnets, semiconductors and glass. Westwater Resources will receive $25 million to develop the Coosa Graphite Deposit in Alabama, supporting domestic battery manufacturing. A further $25 million is going to Global Advanced Materials in Pennsylvania for tantalum and niobium production. These materials are used in electronics, magnets and steelmaking. The US is also putting money into mineral projects outside the country. The Development Finance Corporation will match a $4.8 million investment in Harena Rare Earths to develop a rare earth mine in Madagascar. The project is intended to provide materials for US manufacturing, including magnet metals and rare earths. The White House said these investments are part of a broader effort to reduce US dependence on overseas supplies of critical materials. Mining is only the first step in that supply chain. Minerals must also be processed, refined and turned into usable components before they can reach batteries, electronics, aircraft or weapons systems. Mining schools get major funding The administration is pairing the industrial investments with more than $180 million for mining education and workforce development. The Department of Energy will invest $100 million across 14 mining schools, with the goal of increasing the number of graduates with mining, minerals and related supply-chain credentials. The Department of War will provide more than $80 million to three schools for workforce programs and technology innovation hubs focused on training geologists, metallurgists and mining engineers. The workforce push addresses another bottleneck in the US minerals supply chain: having enough trained workers to operate new mines, processing facilities and manufacturing plants. The White House said the administration has signed or approved 160 minerals deals totaling nearly $40 billion since January 2025, as it seeks to expand domestic production of materials considered important to national and economic security. Recommended ArticlesGet the latest in engineering, tech, space & science - delivered daily to your inbox.With over a decade-long career in journalism, Neetika Walter has worked with The Economic Times, ANI, and Hindustan Times, covering politics, business, technology, and the clean energy sector. Passionate about contemporary culture, books, poetry, and storytelling, she brings depth and insight to her writing. When she isn’t chasing stories, she’s likely lost in a book or enjoying the company of her dogs.